question 17 You are the auditor of MLS Ltd, an educational institution. For the financial year ended 30 June2019, MLS disclosed in its financial statements that it would discontinue the manufacturing of halfof its current products in the next 12 months. Management’s reasons for the decision weredecreases in consumer demands and changes in environmental laws. Consequently, revenue isbudgeted to decrease by $60 million in the next financial year.Required:Select which form of opinion you would consider the most appropriate to use. Give reasons.

The client has made appropriate disclosures regarding the intention to discontinue the manufacturing…

Answered: - form of opinion you would consider…

Business

Accounting

- form of opinion you would consider the most appropriate

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

question 17

You are the auditor of MLS Ltd, an educational institution. For the financial year ended 30 June
2019, MLS disclosed in its financial statements that it would discontinue the manufacturing of half
of its current products in the next 12 months. Management’s reasons for the decision were
decreases in consumer demands and changes in environmental laws. Consequently, revenue is
budgeted to decrease by $60 million in the next financial year.
Required:
Select which form of opinion you would consider the most appropriate to use. Give reasons.

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